No changes, no surprises in Turkey.
- Benchmark Repo Rate 7,5%
- Overnight Lending Rate 10,75%
- Overnight Depo Rate 7,25%
In its statement, CBT in Ankara omits usual reference to 10.25% funding rate for market maker banks (as previously announced in its roadmap of monetary policy normalization).
Statements from CBT:
- Loan growth rates reasonable, consumer loans moderate, supporting C/A improvement.
- Foreign demand remained weak in 1H, domestic demand moderately contributed to economic growth.
- Growth composition seen gradually changing in favor of net exports due to rising demand in EU
- Energy price developments impacting inflation positively.
- FX movements delaying improvement in core inflation trend
Tight stance in liquidity policy to be preserved
TRY deppreciates, USDTRY above 3.02